The Economic and Environmental Benefits of Collaborative Pick-Up in Urban Delivery Systems

Abstract The fierce competition between carriers in urban delivery systems has led to several negative consequences, such as inefficiency, road congestion, and harmful pollution. One way to address these issues is by encouraging horizontal collaboration, since many vehicles at this stage are less than full. This study aims to evaluate the benefits of collaborative pick-up in urban delivery systems. The problems are modeled based on the multi-depot vehicle routing problem. A case study with two carriers in Pekanbaru city, Indonesia, is presented as an illustration. The numerical results suggest that the economic benefits from the collaboration are significant when the spare capacity in the system is plenty. In contrast, the environmental benefits are typically linear with the reduction of vehicle miles traveled. The study findings provide practical insights for urban planners and logistics service providers to foster sustainable development in the city.